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Statement on the FCC’s Proposed Business Data Services Regulations

Background: Today, the Federal Communications Commission (FCC) released a fact sheet outlining a draft order for regulating the business data services market.

The following statement can be attributed to USTelecom President Walter McCormick:

“Chairman Wheeler’s draft order appropriately recognizes that companies are investing and competing in BDS, and that price regulation of packet-based IP technologies is both unwarranted and unwise. We are concerned, however, that the order appears to apply indiscriminate price regulation to legacy TDM services without regard to the state of competition in the local market, or economic factors such as company size, demographics, and geography of the service area. In doing so, that aspect of the order is inconsistent with the commission’s obligation to engage in reasoned decision-making based on the record before it. We would urge the commission to revise its approach here to better align with its statutory mandate to rely wherever possible on competition, rather than regulation, in order to encourage investment, job creation, and economic growth.”